Netflix is Called ‘Qwikster’ Now for Some Reason

I didn’t really cover it when Netflix raised their price for unlimited streaming and one DVD from $9.99 a month to $7.99 month for streaming and $7.99 for one DVD, because I was kind of confused about the backlash. Didn’t Netflix used to be like $28 a month? Hobos can afford Netflix, shut up and eat your ramen, proles. Well for some reason, Netflix took all this criticism seriously, and Netflix co-founder Reed Hastings (above right) sent us all a personal email. It’s long, so I put it after the jump, but the gist is this: Prices will stay the same, but now streaming and DVD service will be separated into two companies with two different websites — streaming with Netflix, and DVDs with a new name, “Qwikster.” “Why, that name sounds so fresh!” I said while putting on my Jnco pants and listening to Smash Mouth.

How much company time do you think went into this decision? And how much more into the name itself? Oh God, I bet there were thousands of Power Point presentations. MILLIONS. “ATTENTION, EVERYONE! I’VE CALLED THIS EMERGENCY MARKET ADJACENCY STRATEGIZING SESSION TO HELP IDEATE DISRUPTIVE DIFFERENTIATION GROWTH METHODOLOGIES!”

In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Get it? We put “qwik” in the title because of how quick it is. I wanted to make sure everyone got that. It was a decision we undertook with a heavy heart, and only after months of grueling focus groups. The “ster” was a more personal decision, as my fraternity nickname was “The Reedster,” and we had some real good times back them. Hopefully you, and I, and Netflix, and Qwikster, can have some more good times, together going forward.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

WHO WILL THINK OF THE RED ENVELOPES??? REED HASTINGS, THAT’S WHO! It is only together that we can finally conquer our grief over the Netflix envelope logo change. This is terrible news. But thanks to Reed Hastings, the grieving process has begun. Now if you’ll excuse me, I have to write Lars Ulrich an angry missive on Friendster.

Here’s the full text of the email:

Dear Vince,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

And of course, this drew hundreds of reasoned, constructive comments, such as..

@adigitalmindonline “As an American I am entitled to my opinion without remorse or ridicule.”

Note to Blockbuster™: Changing your name to Bloqbuster could have forestalled bankruptcy.

By: Ace Rimmer

09.19.2011 @ 3:22 PM

We chose the name Qwikster because it refers to the illiteracy epidemic, misguided attempts at appearing hip and cool, and form over content.

Oh wow, that’s totally appropriate. What a great idea.

By: Morton Salt

09.19.2011 @ 3:22 PM

The next step in the Netflix/Qwikster evolution? Retail stores where you can browse the inventory in person. The best part is, there’s no waiting for the mail or having to deal with the confusing hassle of streaming video over the internet. Just show up at the store, if they have a movie you want, you just take it home with you. Return in three days and everything’s golden. No streaming hiccups, no difficult to open envelopes. They’ll even have an easy-to-use return slot on the outside of the building, so you don’t have to go in (unless you’re ready for your next Qwikster night)!

By: Crapbasket

09.19.2011 @ 3:25 PM

The illogic behind this is so confoundingly stupid it has seriously blown my mind. I just cannot wrap my dome around changing name to make not expensive for custome to haaaaaave… [stroke]

By: slobhero

09.19.2011 @ 3:26 PM

Next month, Reed will send us an email cancelling the DVD program and teaching us all about Piratebay.

By: Bubb Rubb

09.19.2011 @ 3:35 PM

Lars Ulrich is pretty sure he’s getting f*cked somehow.

By: Patty Boots

09.19.2011 @ 3:36 PM

This is pretty pointless, but I still don’t get the shit storm over the price hike. Netflix is still cheaper and more convenient than the dark ages of Blockbuster.

Look, nobody wants to go back to putting on decent clothes and driving all the way to the store just to find out that everything good is out of stock and you can’t rent anything anyway without paying ridiculous late fees because you returned something an hour late.

By: Asher

09.19.2011 @ 3:36 PM

Say what you will about white people, but god damn, if we aren’t top-notch when it comes to manufacturing minor annoyances and treating them like an epidemic of superAIDS.

By: Bubb Rubb

09.19.2011 @ 3:38 PM

Wait, was Qwikspace taken already?

By: Chuck WingDuck

09.19.2011 @ 3:46 PM

Something named Qwikster doesn’t sound like it should be delivered by mail, but rather by hand. Ehhh ehhh *elbow nudge.

By: Otto Man

09.19.2011 @ 3:49 PM

Qwikster? Didn’t I own stock in them in the late ’90s?

By: rotsujin

09.19.2011 @ 3:52 PM

Regardless of whether or not the price is fair, when you raise your rates by 60 per cent (78% if you include the 1 dollar hike last year), of course there is going to be a backlash. Not only does it cost more, but what was wrong with your business model before that you need to make such a drastic change? People lose confidence in your ability to run a business when you do that.
If he was planning this all along; however, it was a necessary step. Isolate the money losing part of your business, then put a bullet in it.

By: Bubb Rubb

09.19.2011 @ 4:01 PM

**Sees Vince’s Lars Ulrich joke, bows head in shame**

By: Asher

09.19.2011 @ 4:09 PM

I wish they would have just gone all the way with this and named the new company “Hollywood Video”

By: Bishop Luke Helick Deannus

09.19.2011 @ 4:10 PM

Qwikster sounds like a playful nickname for a premature ejaculator. “Don’t worry. You’ll get ’em next time, qwikster!”

By: Mr. Zero

09.19.2011 @ 4:14 PM

So Netflix is hoping that the name Qwikster is going to conjure images of quick delivery in the customers mind. I’m sure that’s what they’ll think of rather than, say, images of the rebranding that Amway did a few years back when they renamed their shitty pyramid scheme Quixtar. No one brought this up in one of the 500 naming meetings they probably had? F*cking geniuses.

By: Ace Rimmer

09.19.2011 @ 4:19 PM

New up, metaphorically.

By: Moose

09.19.2011 @ 4:22 PM

Why watch movies for free when you can pay for it? Thank you, Reed.

By: kazoshay

09.19.2011 @ 4:24 PM

but will quikster allow access to VHS tapes? richard linklater’s suburbia still isn’t on DVD.

By: Junker23

09.19.2011 @ 4:27 PM

Uhh, isn’t streaming something instantaneously to my teevee a whole lot qwicker than waiting for the mailman to bring it to me?

By: Juan Carlo

09.19.2011 @ 4:32 PM

Qwikster?

That’s a bit too close to “Quixtar”–which is what Amway changed its name to in the late 1990s after all the bad press they got for being a pyramid scheme and a cult and whatnot.

Of course, they ended up changing their name back to “Amway” once they realized that being a known but hated entity is ALWAYS better than being an entity no one has ever heard of.

So this is a stupid move on Netflix’s part. Why change their name when absolutely everyone has heard of Netflix? MOst companies would kill for that sort of name recognition. It makes no sense.

By: pigpeen

09.19.2011 @ 4:35 PM

Dear Filmdrunk,

First of all, thanks for the great content. It’s a refreshing dose of creativity on a daily basis. I have enjoyed my time here as a commentor and look forward to continuing our relationship.

Per this comment, I’d like to submit the following explanation. I know I haven’t achieved the highest level of quality that is expected at Filmdrunk. If the comment section is going to continue to grow and be successful, I know that it will take dedicated, proactive commentors. To this end, I am currently working on expanding my knowledge base, studying movie lore, and watching as much stand up as possible. One of these days I’ll actually listen to a frotcast.

I assure you that I take this seriously and will take ownership of my role here from now on. Again, thanks for the opportunity.

P.Peen

ps – I’m sorry I banged your mom

*rips taco bell fart*

By: Juan Carlo

09.19.2011 @ 4:40 PM

But I was actually an early adopter to netflix (I was a member when I was in highschool back in the late 1990s as I got a free membership with the first DVD player I ever bought), and I have to say back then they were the BEST THING EVER! Seriously, it’s hard to overestimate how awesome they were to a highschooler who lived in a rural area and who up until discovering Netflix thought video stores were basically just a tiny rack of movies at a gas station.

Suddenly having access to every movie ever made was awesome.

But now days I just torrent everything. Who still uses netflix anyway?

By: Fizbandu

09.19.2011 @ 4:46 PM

I’m sure someone has mentioned this already, but checking out @qwikster on Twitter points to poor market research on behalf of netflix. Also, dude must have woken up to a tone of new followers today.

By: Wadatah

09.19.2011 @ 5:20 PM

Whatever. It is still way cheaper than cable. Calm the fuck down, white people.

By: Assmode

09.19.2011 @ 5:43 PM

But I am already a member of Q|_|iwiwCK5T3r! Are you telling me I fell for another email scam? Because that would explain a lot of credit card charges.

Not all of them, of course.

By: Mr. Teeny

09.19.2011 @ 5:44 PM

Hey Kazoshay,

SubUrbia may not be available on DVD, but you can stream it on Netflix. If you haven’t tried it, it’s the streaming video version of Qwikster.

By: TFBuckFutter

09.19.2011 @ 6:05 PM

1) What is Qwikster (why not name it Qwikflix to tie the two together, dummies? Qwikster sounds like a truck stop) going to do when the post office goes belly up?

and

2) Why does Kazoshay need constant access to Vonni Ribisi nudity?

By: Vince Mancini

09.19.2011 @ 6:15 PM

I’ll never forgive Richard Linklater for stealing his title from the one true Suburbia.